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Will China bond defaults rise?

China’s corporate bond market has seen a spate of defaults amongst SOEs (Chinese state-owned enterprises) since November. It brought a number of questions to the fore – is this a bad omen for the future, will investors have to learn to live with China credit defaults? Not necessarily, says Sabrina Jacobs, Fixed Income Investment Specialist at Insight Investment. In our interview she talks about the measures the Chinese government takes to support SOEs as the backbone of the economy as well as the outlook of the China bond market.

 

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